A recent Wall Street Journal article references a correlation between home mortgages and medical bills. In the current economic times, the drop in home values is negatively affecting the healthcare industry. Many people borrow against the value of their homes to pay off medical bills. With the values of their homes dropping, consumers have less equity to pay their bills.
According the the New York Times, hospitals are already feeling the economic downturn. Many patients with insurance are passing on knee surgeries, hernia repairs and weight loss surgeries; among the most lucrative procedures for hospitals. At the same time, greater numbers of people are showing up in emergency rooms who are unable to pay their bills. The hospitals are concerned because the money making procedures usually offset the charity care and unpaid bills.
When we come out of the current economic crisis and home values are re-established, what will the outcome be for the healthcare industry? In 2005, well before the stock market fall took place, California hospitals had $5.8 billion in bad debt and charity care. In 2007 that figure rose to $7.1 billion and is expected to exceed $8 billion in 2008.
Given the hard financial times that the healthcare industry is also undergoing, now may be the perfect time for consumers to take matters into their own hands and work with hospitals and doctors to reduce their medical bills.
Posted by medicalbill 
